September 1, 2011 / 4:20 PM / 6 years ago

CORRECTED - CIBC wealth management profit rises 12 percent

(Corrects paragraph 7 to show assets under management were C$81.2 billion, up from C$73.4 billion, not C$81.6 million, up from C$73.9 million; and assets under administration were C$207.8 billion, up from C$190.2 billion, not C$1.38 billion, up from C$1.22 billion)

* Wealth unit earns C$68 mln in Q3 vs yr-earlier C$53 mln

* Revenue up 12 percent at C$404 million

TORONTO, Aug 31 (Reuters) - Quarterly profit at Canadian Imperial Bank of Commerce’s (CM.TO) wealth management unit rose 12 percent due to higher fee-based revenue and commissions from new-issue and equity-trading activity.

CIBC, Canada’s No. 5 lender, said on Wednesday its wealth management division had net income of C$68 million ($69.4 million) in the bank’s fiscal third quarter, ended July 31, versus C$53 million a year earlier.

Revenue was up 12 percent at C$404 million, mainly due to higher fee-based and commission revenue from new-issue and equity-trading activity; higher client assets under management, primarily due to improved capital markets; and higher long-term net sales of mutual funds.

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FACTBOX-Wealth management results at Cdn banks [nN1E77U0VB]

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CIBC said its retail brokerage revenue was up 17 percent at C$263 million, helped by higher fee-based revenue and stronger equity markets compared with the year-earlier quarter.

Asset management revenue rose 17 percent to C$116 million, helped by stronger markets, while revenue from private wealth management was down 3.8 percent at C$25 million.

Non-interest expenses rose 8 percent to C$307 million, mainly due to higher performance-related compensation. The unit had 3,675 full-time equivalent employees at the end of the quarter, compared with 3,566 a year earlier.

Assets under management were at C$81.2 billion, up from C$73.4 billion a year earlier, while assets under administration were at C$207.8 billion, up from C$190.2 billion.

In July, CIBC said it was buying a minority stake in U.S. asset manager American Century Investments for $848 million, broadening its geographic reach and expanding its asset management offerings, which fall under its wealth management unit. [ID:nL3E7IF1PD]

CIBC’s overall profit rose a higher-than-expected 26 percent in the quarter and the bank raised its dividend for the first time in four years. [ID:nN1E77S1D7]

$1=$0.98 Canadian Reporting by John McCrank; editing by Peter Galloway

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